The Role of HR for Startups – Guide 2024

Qubit Labs
Qubit Labs Team

A startup HR is itself a unique breed of HR. There are two reasons to explain that. In most cases, a startup starts from scratch regarding its HR procedures. The second reason is that very few businesses can move at the potential speed and pace of a startup.

The Role of HR for Startups - Guide 2024

The combination of these reasons is a tricky mix, so founders of these businesses should know that HR for startups can be extremely helpful. It can be a competitive advantage to allow businesses to perform better and grow faster.


Do You Really Need HR for Startups?

The first thing you should know is that human resources at your startup is the heartbeat of the business. They support and protect every facet of the company – the business, the employees, the legal standings, the image, and more. A startup HR plays an important role in the success of your organization and ensures compliance and structure.

Here are a few reasons why you should consider HR services for startups:

HR Services for Startup Cover

  1.     Legal protection. With hundreds of state and local regulations to interpret, your company needs a team that speaks the language. By following governmental health and safety requirements, you will not only protect your company, but you will also create a safe and responsible work environment for your staff.
  2.     Recruiting. You need HR for startups because qualified employees are not so easy to find. You should know where and how to recruit them. With an effective recruiting plan, you will save both time and money for your business.
  3.     Onboarding. This process has a big impact long before people start working because every step matters. Thanks to HR services for startups, it is possible to establish a streamlined hiring process for recruiting, onboarding, interviewing, and training. This way, you will get new staff acclimated quickly and effectively.
  4.     Record keeping. Every new worker needs to get the same information and opportunities when they become a part of the team. If HR procedures are documented, you will be able to create a consistent working environment. Maintaining these documents provides repeatable and effective processes, from recruiting to training.
  5.     Team building and company culture. Creating and maintaining a good company culture can start with startup HR, but your staff ultimately carries the torch. Team-building activities are wonderful tools for creating those strong bonds within your company. Thanks to these events, it is also possible to reduce turnover, improve employee engagement, support a happier work environment, provide conflict resolution, etc.


HR Checklist for Startups

HR Checklist for Startups

Not that you know how critical HR is for your business, it is time to look closer at the HR checklist for startups:

1. Establish your HR department structure.

Your business does not have to obtain a comprehensive organizational plan on the very first day, but there must be a basic HR department plan for operation and structure. The thing is that this plan must be a guideline as your business expands and will assist in the HR department’s development.

Different from a huge enterprise, startups tend to have fewer resources and people. However, your department must include a strategic leader who will establish policies and ensure compliance.

2. Utilize a human resource information system (HRIS).

HR software helps companies of all sizes manage onboarding, people analytics, performance management, and more. This is especially important for startups.

If you have limited resources for startup HR, HRIS will assist you in introducing the main HR functions into your organization. It is recommended to invest in a solution that will make it easier to manage various functionalities.

3. Establish recruiting and onboarding processes.

Even if your company is small, you should think about how to make hiring decisions. For example, you should know how to determine who your ideal candidates are, where to post job ads, and how to organize the onboarding process. HR for startups will make sure that you have the necessary paperwork ready, regardless of whether it is your first or 50th employee.

In addition to the necessary paperwork, you should consider the onboarding process for new hires. A great onboarding process sets your workers up for success from the very beginning. Thanks to HR services for startups, you will be able to use time to introduce objectives and establish expectations.

4.  Comply with safety and health regulations.

Another key point on the HR checklist for startups is making sure that the work environment is safe for staff and meets local regulations. Creating an HR department focused on creating a workplace that meets all regulations provides legal protection for your business. Regulations tend to change, which is why an HR team will help make sure the company complies with the laws.

5.  Set up processes for benefits and payrolls.

As soon as you establish the hiring process, you need to make sure that your employees stay within your company for a long period. That is why competitive compensation and benefits are important.

HR for startups will help to determine what your pay structure should look like, as well as retirement benefits, policies for sick time and vacation, and what system will be utilized to manage payroll.

6.  Nurture employee relationship.

If there is no dedicated support and resources, it is difficult for startups to create and nurture an inclusive environment. HR for startups will help you establish policies before complaints appear, which means that you will be able to handle them. You should be ready to address any employee complaints by outlining your company`s standard of conduct, developing a plan to solve problems, and establishing a system for collecting employee feedback.

Along with addressing concerns, there should be an individualized approach to staff engagement to maintain relationships. Thanks to HR for startups, workers will know their purpose in your company, find meaning in what they do, and get the skills to perform their tasks well.

7.  Introduce performance management processes.

When you are just starting your new company, training employees and evaluating their performance might not be your main priority. An essential part of setting up an HR department in a new organization is making sure that your employees can grow and improve their skills and delivering them appropriate feedback for growth. This can be done by establishing a performance evaluation process and keeping personnel files. If you fail to train staff, there will most probably be the loss of employees and poor performance. These issues can result in damage to your relevance in the industry.

8.  Get ready for audits.

This is one more key point in the HR checklist for startups because you should consider it while detailing your HR policy. Before you are audited, your HR department must establish areas to check and review compliance.

The main areas include:

  •       Orientation and training;
  •       Recruitment;
  •       Salary structure;
  •       Company policies;
  •       Employee relations;
  •       Benefits;
  •       Payroll.

9.    Create an action plan.

Creating a clear action plan to use these key points on the HR checklist is essential for getting management approval and ensuring that everyone is on the same page with HR actions and budgets. Management can further categorize projects by importance level and assist HR in creating a project timeline for performing every action.

A significant part of the action plan should be creating an employee handbook that explains HR policies, like commitments, benefits, equal opportunity, pay, employment practices, consequences for misconduct, safety issues, and leave of absence.

Thanks to this, employees will be on the same page, and they will not be confused about new procedures and policies. HR for startups will also help answer a lot of basic questions that take up valuable time.


HR for Startups: Requirements

It is obvious that HR for startups is a critical aspect of your business, but you should know how to choose an outstanding manager. That is why you should understand what their key responsibilities and desired skills are. It means that you should get acquainted with the following information.

Key responsibilities include:

  •       Create and administer procedures, programs, and guidelines to align the workforce with the strategic goals of the business.
  •       Create employee training and development, including ongoing professional and personal development opportunities and onboarding.
  •       Coordinate benefits and compensation for employees.
  •       Oversee the talent sourcing, selection, and recruitment processes.
  •       Ensure the overall health, well-being, and safety of the staff.
  •       Lead employee retention and engagement initiatives.
  •       Manage, grow, and enhance the human resources department.
  •       Develop and maintain the company culture.

HR for startup managers should obtain the following skills and experience:

  •       Minimum of five years of previous HR experience.
  •       Bachelor`s degree in HR management or similar.
  •       Executive presence – they must be professional, polished, and able to communicate with all sorts of executives and employees.
  •       SHRM-certified professional is preferred.
  •       Excellent communication skills.
  •       Proven experience in organizing company-wide development and training.
  •       Accountable – people can count on the professional.
  •       Expert knowledge of basic HR technology.
  • Service orientation – the manager approaches work with confidence.
  •       Thoughtful, effective collaborator.


HR Services for Startups with Qubit Labs

Employment laws never stop changing, which means that keeping up with them takes resources and time. Instead, you can outsource some or all aspects of running HR for startups with a dedicated partner that understands the industry.

Qubit Labs will handle all the complexities of talent mapping, talent acquisition, remote hiring, employee issues, engagement, benefits, talent, compensation, compliance, and more as a part of our outstaffing service. We will choose professionals exclusively for your company from one of the top hiring locations: Ukraine, Poland, Moldova, Romania, Bulgaria, Georgia, Portugal, Azerbaijan, Brazil, and Mexico; so that you can:

  •       Streamline procedures and improve efficiencies and operations.
  •       Combat inflation with predictable costs for employee compensation and benefits.
  •       Get more time for more strategic aspects of your business.
  •       Increase profitability and lower expenses related to staff, technology, and infrastructure.
  •       Offer benefits to help you attract and retain professionals.

HR for Startups by Qubit Labs Schedule Call

Qubit Labs has enough experience to deliver the best HR services for startups as a part of our IT staff augmentation service that will help your company grow.


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